Among investors in the securities market, there’s a saying: “Sell in May and go away.” Below is some supporting data, but what causes this?
The chart below shows the same type of statistics by sector. Notice that the retail sector is the least affected by this phenomenon:
Perhaps it’s simply because more people take vacations in the summer…
Source of charts: James Montier, Behavioral Investing.
P.S.
I remembered a study claiming that market returns tend to be 3%-5% lower during full moons compared to new moon days. I have no idea why:
Lunar phases and stock returns:
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